If you believe that your life will continue on as normal because the war between Russia and Ukraine is on the other side of the globe, you should think again. We were already facing the worst energy crisis since the 1970s before the war broke out, and Russia is one of the most important energy producers on the entire globe.
As energy markets are thrown into further turmoil, energy prices will go to unprecedented heights. And as I have documented repeatedly in recent months, the global food crisis has just continued to get worse as global food supplies have continued to get tighter and tighter. Normally, Russia and Ukraine export vast quantities of food to the rest of the world, but the war is going to change that. We really are facing a horrifying breakdown of our food and energy systems, and that is going to affect every man, woman and child on the entire planet.
Let’s start by taking a look at the impact that this war will have on food supplies. Even the Washington Post is admitting that the war in Ukraine will likely “push U.S. food prices even higher”…
Russia’s invasion of Ukraine could push U.S. food prices even higher, as the region is one of the world’s largest producers of wheat and some vegetable oils. And the disruptions could drag on for months or even years, as crop production in the area could be halted and take a long time to restart.
This new inflation shock comes at a time when global markets remain extremely strained because of pandemic-related disruptions. The price changes impacted commodity prices in recent days and could flow through to higher costs at grocery stores and restaurants soon.
Food prices have already been rising very aggressively all over the world, and this has pushed millions upon millions of poor people at the bottom of the economic food chain into hunger.
But now this war threatens to push this crisis to a dangerous new level, because Russia and Ukraine typically produce “nearly a quarter of the world’s wheat”…
Russia and Ukraine together produce nearly a quarter of the world’s wheat, feeding billions of people in the form of bread, pasta and packaged foods. The countries are also key suppliers of barley, sunflower seed oil and corn, among other products.